Monday, April 30, 2018

First Quarter GDP

Gross domestic product expanded at an annual rate of 2.3 percent for the months January through March, the Commerce Department reported Friday. That marked a slight slowdown from the 3 percent growth rate registered during the final three quarters of 2017.

One key area of growth: Nonresidential fixed investment, reflecting business investment in buildings, equipment, software and more, grew at a 6.1 percent rate. That was faster than this category's average growth rate of 4.6 percent during the economic expansion.

Household spending increased at a 1.1 percent rate in the first quarter, pulling back from the fourth quarter, when it rose at a 4.0 percent rate on strong holiday spending. The saving rate rose from the fourth quarter to the first, meaning households pocketed added disposable income from tax cuts rather than spending it.

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